Bitcoin Edges Up Amid Equities Divergence and Federal Reserve Uncertainty

Bitcoin (BTC) rose modestly by 0.22% over the past 24 hours to trade near $64,684, mirroring the broader cryptocurrency market's gain of 0.33%. The S&P 500 traded little changed after recent record highs.

The divergence between Bitcoin and US equities has grown more pronounced since the start of this year, with the S&P 500 returning over +25% while Bitcoin is down close to -35%, according to Thahbis Rahman, Research Analyst at Block Scholes.

However, derivatives data show improving sentiment beneath the surface. The long-short taker volume ratio turned bullish for the first time in at least a week, with long positions accounting for nearly 61% of market orders, and Bitcoin futures open interest increased to around 759,000 BTC.

Rahman noted that the rolling 90-day correlation between Bitcoin and the S&P 500 remains historically elevated at around 45%, indicating that Bitcoin has simply participated less in market rallies while declining more sharply during periods of weakness.